Ikea UK today announced retail sales of £2.3 billion for the financial year 2024, a 6.8% decrease compared to the previous year (£2.46 bn). The company attributes this performance to its strategic decision to prioritise affordability, investing more than £117 million in lowering prices. Recently we shared the news that Ikea has been suffering from a decrease in sales in other European countries as well.
The price reductions focused on some of Ikea's most popular items. In total, 3,481 products, approximately 33% of the range, were reduced, offering customers an average price reduction of 20% on these items.
Despite the impact on FY24 revenue, Ikea UK saw an uptick in demand as the year progressed and as more new lower prices were introduced, particularly in key categories like kitchens, bedrooms, and storage solutions.
As well as its focus on lowering the price of products, Ikea has lowered service-related prices. Throughout the year, the retailer introduced more affordable delivery options, such as reduced furniture delivery pricing and an increased offer of free click-and-collect services2. Furthermore, Ikea continues to offer free in-store and online planning services, such as for kitchens, bedrooms, and living room storage, helping customers to plan and optimise their spaces.
With consumers looking for smart ways to save money, Ikea has seen continued success with its Buyback scheme, rewarding customers with an in-store credit. In FY24, a total of 52,600 products were bought back, demonstrating the popularity of this part of Ikea's plans to enable a more circular economy.
Continued investment to create a more accessible Ikea UK
Despite economic challenges, Ikea UK is investing significantly to become more accessible. Progress includes the upcoming 2025 openings of two new City Stores, on Oxford Street in London, and in central Brighton, each over 50,000 sq ft, bringing Ikea closer to its customers. Additionally, Ikea plans to open over five Plan and Order Points, offering free, bespoke kitchen and bedroom design consultations. As part of this improved customer experience, Ikea launched over 100 mobile pick-up points at Tesco stores, delivering nearly 225,000 orders this year.
Online sales continue to grow
The retailer saw the trend of growing online sales continue, with 41.7% of Ikea UK's sales made online in FY24 (up from 38.5% in FY23). In London, every second order is now coming through its e-commerce business, with share of online sales reaching 51.4% in FY24.
A key contributor to this increase was the retailer's newly opened distribution centre in Dartford, which processed nearly half a million orders for customers in London and the South East. In addition to enhancing delivery capabilities, the new distribution centre has become a springboard for greener deliveries. Ikea UK achieved a 40% increase in zero-emission deliveries, now standing at 90% in London and 65% nationwide. This progress is powered by strategic investments in EV infrastructure, including a fleet of 270 electric vans and 16-tonne trucks that deliver nearly 3,500 orders daily across the UK.
More information:
Ikea
www.ikea.com